Editor’s Note
The once-booming reuse market is entering a new phase. As the article explains, the era of easy growth has ended, leading to market saturation and a shift toward more strategic competition. This analysis explores the implications for platforms and sellers navigating this changed landscape.
1. The End of the ‘Buy Anything and Profit’ Era and Market Saturation
Over the past decade, the reuse market has enjoyed continuous growth, fueled by rising interest in SDGs and the proliferation of flea market apps. However, the 2025 ranking results starkly suggest that this ‘growth bonus’ has ended. Given the limited supply of new brand goods, there is a ceiling to the total volume of goods circulating in the reuse market. With numerous new entrants, the domestic market has now fully taken on the appearance of a ‘zero-sum game’ (a battle for customers and inventory). The industry has entered a phase where simply opening stores and advertising is no longer sufficient to gather inventory, leading to a war of attrition based on thin margins and high volume.
2. The Pendulum Swings Back from Tech Overemphasis – The Meaning of Komehyo’s Comeback
The fact that Komehyo HD reclaimed the top spot, surpassing long-time industry leader Valuence HD (Nanbokuya), signifies a major paradigm shift for the industry. In recent years, many companies have aggressively pursued rapid store expansion (tech-ification) through ‘AI appraisal’ and ‘systematization of operations.’ However, this result proves that efficiency through systematization alone cannot win the procurement competition for high-value items. Komehyo’s victory lies in its long-cultivated ‘development of appraisers’ and ‘deep product knowledge (eye for quality)’ – the seemingly analog and inefficient depth of its ‘human capital.’ In an era where counterfeits are becoming more sophisticated and market prices are volatile, customers are returning their trust to ‘professionals with a discerning eye,’ not just ‘fast AI.’
3. Survival Strategy Shift from ‘General’ to ‘Hyper-Specialization’
Looking at the top companies, another trend emerges: the ‘victory of specialization.’ ‘Kishin,’ which surged to 5th place, achieved rapid growth by focusing exclusively on the niche field of colored stones (color stones) – an area many operators had avoided due to difficult pricing and high risk – and by developing its own resale channels. As major players with capital wage a ‘total war’ for economies of scale through ‘M&A’ and ‘overseas expansion,’ the only path for small and medium-sized businesses to survive is to plant their flag in areas (niche tops) that large companies discard for efficiency and become the world’s best in that specific field.
1. Komehyo HD vs. Valuence HD: Contrasting Fortunes
One factor cited for Valuence HD’s struggles is the high ‘personnel turnover rate’ accompanying its rapid expansion. In contrast, Komehyo HD has high employee retention, allowing veteran appraiser expertise to accumulate within the organization. While the essence of the reuse business is ‘buy low, sell high,’ this result serves as a reminder that the foundation supporting it is ‘the human power to discern fair value.’
2. The FC Strategy of ‘E-France (O-Takaraya)’
‘E-France,’ ranked 2nd, pursued a ‘surface area’ strategy through multi-store expansion via franchises (FC) rather than company-owned stores, demonstrating overwhelming inventory collection power. However, with the overall market pie becoming fixed, it is predicted that the industry will enter a phase where cannibalization among FC franchisees and the quality of headquarters functions will be severely tested.
With the trend of a weak yen continuing, companies lacking a ‘global arbitrage’ scheme to sell domestically procured goods overseas will suffer from declining profit margins. Maxas predicts that 2025 will be a ‘year of major shakeout,’ where M&A of small and medium-sized reuse shops by well-funded top companies will accelerate, drastically redrawing the industry map.
Introduction of a ‘Practical Training Program’ Using Real-World Failures as Teaching Material
This market analysis revealed that in the future reuse market, shops that merely ‘buy anything’ will be weeded out, and ‘niche top-type’ personnel with deep knowledge of specific genres and empathy for customers will be essential. In response, Maxas will begin offering a new curriculum for FC franchisee training designed to transform ‘complete beginners with zero knowledge’ into ‘highly specialized buyers’ in a short period.
This program analyzes audio and video data from actual failed purchase attempts during home-visit buying services to strengthen the following three areas:
1. ‘Specialized Product Approach Training’: Turning ‘Not Knowing’ into Trust
Specialized training to prevent cases where lack of knowledge regarding highly specialized hobby items (e.g., diving equipment, fishing gear) leads to loss of trust and failed deals (e.g., video case: failure due to saying “I’ve never seen this before”). It aims to teach dialogue skills to build rapport and trust (“This person understands its value”) by empathizing with enthusiasts’ passion and dedication, not just searching for model numbers.
2. Introduction of ‘Process-Oriented KPIs’ Evaluating ‘Number of Steps’ Over Gross Profit
To prevent aggressive negotiation or easy withdrawal in pursuit of immediate profit, initial evaluation metrics (KPIs) will be changed from ‘profit amount’ to ‘proposal process (number of steps).’ By thoroughly evaluating actions like “Was the customer’s need deeply explored?” and “Was the price rationale logically explained?”, the program cultivates talent that maximizes mid-to-long-term ‘customer satisfaction (word-of-mouth, repeat business).’
3. ‘Case Study Role-Playing’ Based on Real Failed Deal Examples
Using actual on-site failure cases (e.g., “insufficient logic in price negotiation,” “failed ice-breaking”) as teaching materials. A practical format is adopted where a supervisor (SV) accompanies, providing immediate feedback based on recorded data on “how one should have responded at that time,” fostering ‘live negotiation skills’ unattainable through classroom learning alone.
Through this program, the company aims to produce ‘high-quality reuse operators’ who can cater to each customer’s individual life story, not through uniform manual responses, and contribute to raising the overall service level of the industry.
— Kenji Seki, Representative Director, Maxas Co., Ltd.
